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Temecula has a strong base of self-employed buyers. Contractors, consultants, and freelancers are buying here — and 1099 income is how they earn.
Standard loans built for W-2 earners don't fit 1099 borrowers well. A 1099 loan skips the tax return hurdle and qualifies you on actual income.
620+
Min Credit Score
1-2 Years of 1099s
Income Docs
10-20% Typical
Down Payment
2 Years Preferred
Self-Employment History
Lenders typically want 1-2 years of 1099 forms to document your income. Some also accept a CPA letter confirming your self-employment status.
Credit score requirements vary by lender. Most non-QM lenders start around 620, but stronger credit gets you better pricing.
Most big banks won't touch 1099 borrowers without two years of tax returns showing strong net income. That leaves a lot of qualified buyers stuck.
Wholesale non-QM lenders fill this gap. SRK CAPITAL works with 200+ lenders — several specialize in 1099 income documentation specifically.
The biggest mistake 1099 borrowers make is applying at a retail bank first. You waste time and collect hard credit inquiries before finding out you don't qualify.
Your gross 1099 income is what matters here — not what's left after deductions. That's a real advantage if you write off heavily on Schedule C.
Bank statement loans are the closest alternative. They use 12-24 months of deposits instead of 1099s. If your income hits your bank account cleanly, either can work.
P&L loans use a CPA-prepared profit and loss statement. That works better for business owners. For pure 1099 contractors, the 1099 loan is usually the cleaner path.
Temecula's wine country and growing tech corridor attract a lot of independent workers. Many are buying in the $600K-$800K range where 1099 income needs to pencil out.
Riverside County is still more affordable than coastal SoCal. That works in your favor — your 1099 income stretches further here than in LA or San Diego.
Yes. Lenders can combine income from multiple 1099 clients. Consistency across those sources strengthens your file.
Most lenders want two years. Some accept one year with strong compensating factors like a high credit score or large reserves.
No — that's the advantage. Lenders use your gross 1099 income, not your taxable income after deductions.
Yes, typically. Non-QM loans carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions.
Most 1099 loan programs require 10-20% down. A larger down payment can offset a lower credit score or shorter income history.
No. You still document your income with actual 1099 forms. Stated income loans require no documentation — those don't exist anymore.
1099 Loans in Temecula